The digital currency exchange Coinbase is the first platform that has received permission for the safekeeping and proprietary trading of crypto currencies. The German financial regulator BaFin issued the corresponding permit on Monday. So far, the companies that traded in Bitcoin, Ethereum and the like have operated in a kind of legal gray area. Because since January 1, 2020 they actually need a permit for this business. Operating regulated financial services without an appropriate license is a criminal offense that can be punished with up to five years imprisonment. However, the law also provided for generous transitional provisions for companies that had already carried out the relevant business before the relevant directive came into force. Coinbase is now officially allowed toHold, store and transfer crypto values ​​and private cryptographic keys.

Franz Nestler

Editor in business.

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    This is good news for customers, because they can now rely on the fact that their possible deposits there are actually safe according to the standards of the financial supervisors.

    Again and again there are black sheep who take advantage of the unregulated market: Bitcoin worth billions have been stolen in recent years or have simply disappeared.

    Supposedly large exchanges such as Binance recently already have a trading ban in other countries, Coinbase no longer threatens this with the permission.

    Dwindling interest in the Bitcoin business

    Interest in the Bitcoin business seems to be waning, at least if you believe a request from FDP member of the Bundestag Frank Schäffler: Accordingly, there are still 26 applications for permission for the crypto custody business, all of which have not yet been granted.

    A year ago, however, there were still 55 companies that had submitted a notification of intent.

    One or the other company could have already given up or ultimately have shied away from the effort for the final application.

    Schäffler sharply criticized the BaFin for this: “The approval of new market participants in Germany is much too slow.

    This protects the top dogs, but prevents innovations.

    In this way, BaFin is increasingly becoming a disadvantage for Germany as a location. "